M2M FEATURE

Next-Generation M2M and Connected Device Market in the U.S. Will Touch 87 Million Endpoints by 2015

The next-generation M2M and connected device market in the country will touch 87 million endpoints by 2015, according to Compass Intelligence.

Primarily driven by hyper-connectivity, coupled with emerging cloud services, the M2M market during the period will report a compound annual growth rate (CAGR) of over 25 percent.

“We have entered an era where every device that can benefit from being connected via a cellular connection to the Internet will be connected to the Internet,” said James Brehm, senior strategist of Compass Intelligence, in a statement. “This hyper-connectivity coupled together with emerging cloud services will propel society into new ways of interacting with the world around us.”

By 2015, more than 40 percent of M2M connections in the U.S. could be running on 3G, 3.5G, or 4G networks, Compass Intelligence said in its report called “Next-Generation M2M and Connected Device Business Market - A Paradigm Shift: From Connecting Millions of People, to Connecting Billions of Things - Part I.”

However, the M2M segment is facing confusion around what makes up M2M. In order to define the market, the GSMA added devices like connected media tablets, Tier-1 MNOs include connected CE like picture frames and PNDs, while others including M2M specialists and M2MVNOs look solely to B2B applications.

According to the Compass Intelligence survey, the largest B2B vertical market is the transportation and distribution vertical, with over 30 percent market share.

Growth in the M2M segment will come from areas where there is a return on investment. Cloud computing and “cookie cutter” hosted applications are expected to drive M2M adoption. Industry consolidation is in the pipeline over the next twelve to eighteen months.

Recently, market intelligence agency InfoCom said that M2M has become a fast growing and strategically important market for many companies and network operators as M2M provides new possibilities for services and solutions for various products and processes.

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Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

The robust M2M conference program will focus on topics that inform and educate our audience of the latest and greatest technologies, current and future regulatory policies, new verticals, new applications and all of the hottest topics in Machine-to-Machine Industry. The M2M Evolution Conference is trending to become the leading educational and networking event in the M2M Industry and we’d like you to be a part of it.